Niall Collins (Limerick, Fianna Fail)
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Question 61: To ask the Minister for Finance where a person is in receipt of proceeds from the compulsory acquisition of farmlands by the National Roads Authority and they subsequently re-invest this money in similar agricultural land, if any capital gains tax liability arises from the initial disposal to the NRA; and if he will make a statement on the matter. [5268/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that a disposal to the National Roads Authority of farmlands under compulsory purchase is within the charge to Capital Gains Tax in the normal way.

Compensation money for any kind of damage or injury to farmlands, such as injurious affection or disturbance, is also included within the charge. This charge is unaffected, under existing legislation, by a subsequent reinvestment of proceeds in similar agricultural land: there is no "roll-over" relief. In the case of a compulsory purchase the chargeable gain is deemed to accrue on the day the compensation is received by the person disposing of the land.